On Wednesday, the state passed new legislation giving police authority to remove those deemed to be obstructing the area. The law came into effect on Friday.

"Homelessness is a major challenge in our community and I am proud of our government's record to help our most vulnerable and of course there is more to do," New South Wales Premier Gladys Berejiklian said in a statement earlier this week.

"However we will not let protesters play political games with those in genuine need of support."

Mr Priestly said authorities were not taking the issue of homelessness seriously.

"They are not looking at the people - they are looking at the tents," he told Sydney's Daily Telegraph.